Form 17f-2
KPMG LLP
2500 Ruan Center
666 Grand Avenue
Des Moines, IA 50309
Report of Independent Registered Public Accounting Firm
The Board of Directors
MACC Private Equities Inc. and subsidiary:
We have examined management's assertion, included in the accompanying Management
Assertion Regarding Compliance with Certain Provisions of the Investment Company
Act of 1940, that MACC Private Equities Inc. and subsidiary (the Company)
complied with the requirements of Subsections (b) and (c) of rule 17f-2 under
the Investment Company Act of 1940 (the Act) as of October 1, 2007. Management
is responsible for the Company's compliance with those requirements. Our
responsibility is to express an opinion on management's assertion about the
Company's compliance based on our examination.
Our examination was conducted in accordance with the standards of the Public
Company Accounting Oversight Board (United States) and, accordingly, included
examining, on a test basis, evidence about the Company's compliance with those
requirements and performing such other procedures as we considered necessary in
the circumstances. Included among our procedures were the following tests
performed as of October 1, 2007, and with respect to agreement of security
purchases and sales, for the period from August 6, 2007 (the date of our last
examination) through October 1, 2007:
• Count and inspection of all securities located in the vault of Cedar Rapids
Bank and Trust in Cedar Rapids, Iowa
• Reconciliation of all such securities to the books and records of the
Company
• Confirmation of security purchases since the date of our last report, which
there were none
• Vouching of proceeds of two security sales since the date of our last
report
We believe that our examination provides a reasonable basis for our opinion. Our
examination does not provide a legal determination on the Company's compliance
with specified requirements.
In our opinion, management's assertion that MACC Private Equities Inc. and
subsidiary complied with the requirements of Subsections (b) and (c) of rule
17f-2 of the Investment Company Act of 1940 as of October 1, 2007 with respect
to securities reflected in the investment account of the Company is fairly
stated in all material respects.
This report is intended solely for the information and use of management and the
board of directors of MACC Private Equities Inc. and subsidiary and the
Securities and Exchange Commission and is not intended to be and should not be
used by anyone other than these specified parties.
/s/ KPMG LLP
Des Moines, Iowa
October 12, 2007
MACC PRIVATE EQUITIES INC.
October 1, 2007
KPMG LLP
2500 Ruan Center
Des Moines, IA 50309
Ladies and Gentleman:
RE: Management Assertion Regarding Compliance with
Certain Provisions of the Investment Company Act of 1940
MACC Private Equities Inc. is responsible for complying with the requirements of
subsections (b) and (c) of Rule 171-2, "Custody of Investments by Registered
Management Investment Companies," of the Investment Company Act of 1940. It is
also responsible for establishing and maintaining an effective internal control
structure over compliance with Rule 17f-2 requirements.
MACC Private Equities Inc. has performed an evaluation of its compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 as of October 1, 2007
for the period August 6, 2007 through October 1, 2007. Based on this evaluation,
it has determined that MACC Private Equities Inc. was In compliance with the
requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company
Act of 1940 as of October 1,2007, with respect to securities reflected In the
Investment accounts of MACC Private Equities Inc.
Very truly yours,
MACC PRIVATE EQUITIES, INC.
By: /s/ David R. Schroder
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David R. Schroder, President
/s/ Marilyn Benge
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Marilyn Benge, Controller